Housing plan hits snag in Niles

Developer still plans to pursue project at former YMCA in Niles.

Developer still plans to pursue project at former YMCA in Niles.

December 06, 2006|LOU MUMFORD Tribune Staff Writer

NILES -- A snag has developed in plans to erect a senior-citizen housing complex at the site of the former Niles-Buchanan YMCA, 315 W. Main St. Craig Patterson, development agent for the Columbus, Ohio-based Woda Group, confirmed this week that the company's application for tax credits from the Michigan State Housing Development Authority to finance construction of the proposed 49-unit complex was denied last month. As a result, he said, the company will reapply in March. "We're very optimistic. ... We're (still) very bullish on Niles,'' he said. Patterson, the Woda Group's agent for Michigan acquisitions, said time is all the company has lost. "It sets us back,'' he said. "Instead of getting started six months sooner, we've got to wait.'' Patterson said in September he anticipated work on the project would begin next year, with completion contemplated in 2008. Because the project is contingent on receipt of the tax credits, the former Y property, vacated by the opening this week of the new Y on Front Street, is still being marketed. A check Tuesday revealed prominently displayed "For Sale'' signs. Bret Hendrie, executive director at the Y, said the Woda Group "has to take care of some things'' by Dec. 31 to retain its option to purchase the property, but he doesn't anticipate any problems. He said the property's current zoning status -- commercial -- worked against the developer's tax-credit request. Patterson said much the same thing. "The zoning kind of got in the way,'' he said. Although city officials had informed MSHDA in a letter that the property would be rezoned to moderate-density residential in 2007, Patterson said the state wanted the zoning issue resolved before it granted the credits. With the new zoning classification in hand, he said the Woda Group should have no trouble obtaining the credits during the next application cycle in March. "Everything looks good,'' he said. Patterson said in September he was attracted to the 3.5-acre site on the west bank of the St. Joseph River largely because of the property's elevation, location and proximity to the redeveloped downtown area. He said a $6 million investment is contemplated in Niles. As far as the project itself, he described it as a "working-class, affordable housing'' development for income-eligible seniors. Seniors would be considered anyone 55 and older, he added. Patterson said the Woda Group is fairly new to Michigan but has five projects under way in the state, including one in Hartford. Where the Hartford project is a 49-lot, single-family development, however, the units in Niles would be housed in one building. Senior-related housing is viewed by developers as one of the city's biggest needs, Mayor Mike McCauslin has said. He also has said the Niles City Council would likely consider a payment-in-lieu-of-taxes arrangement instead of conventional property taxes, should it be requested, but Patterson said the Woda Group rarely requests PILOTs. Niles City Councilman Robert Chute has gone on record stating he's not in favor of PILOTs and would vote against it should one be requested.